CENTRAL BANK STAFF CO-OPERATIVE CREDIT SOCIETY LTD.,NAGPUR vs. ITO WARD 1(1), NAGPUR , NAGPUR

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ITA 423/NAG/2022Status: DisposedITAT Nagpur22 March 2024AY 2017-18Bench: SHRI SATBEER SINGH GODARA (Judicial Member)2 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that interest income from nationalized banks also qualifies for deduction under Section 80P, citing a precedent. The AO was directed to finalize the consequential computation.

What were the facts?

The assessee, a co-operative society, claimed deduction under Section 80P for interest income received from a nationalized bank. The Assessing Officer and the NFAC disallowed this deduction.

What were the issues?

Whether interest income earned from a nationalized bank by a co-operative society is eligible for deduction under Section 80P of the Income Tax Act.

Which sections of the Income-tax Act were involved?

Section 80P

AI-generated summary — verify with the full judgment below

Cases cited in this judgment(1)Show list

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Income Tax Appellate Tribunal, NAGPUR “SMC” BENCH : NAGPUR

Before: SHRI SATBEER SINGH GODARA

Hearing: 21.03.2024Pronounced: 22.03.2024

[THROUGH VIRTUAL HEARING AT PUNE] BEFORE SHRI SATBEER SINGH GODARA, JUDICIAL MEMBER I.T.A.No.423/NAG./2022 Assessment Year 2017-2018 Central Bank Staff Co- operative Credity Society The Income Tax Officer, Ltd., M-1, Saraf Court, vs. Ward-1(1), BSNL Bldg., Dhantoli, Nagpur – 440 016 Nagpur. Maharashtra. PAN AAAJC0349L Maharashtra (Appellant) (Respondent) For Assessee : Shri Mahavir Atal, C.A. For Revenue : Shri Abhay Y Marathe, Sr.DR Date of Hearing : 21.03.2024 Date of Pronouncement : 22.03.2024 ORDER PER SATBEER SINGH GODARA, J.M. This assessee’s appeal for assessment year 2017-2018, arises against the National Faceless Appeal Centre [in short the “NFAC”] Delhi’s Din and Order No. ITBA/NFAC/S/250/2022- 23/1046530533(1), dated 31.10.2022, involving proceedings u/s. 143(3) of the Income Tax Act, 1961 (in short “the Act”).

Heard both the parties. Case file perused.

2.

It emerges during the course of hearing at the outset that there is hardly any need for us to delve with the relevant factual matrix at length once it has come on record that both the learned lower authorities, more particularly, the Assessing Officer, had disallowed the assessee’s sec.80P(2)(a)(i)/80P(2)(a)(d) deduction(s)

2 ITA.No.423/NAG./2022 of Rs.27,14,281/- received from Central Bank of India. Both the learned lower authorities hold that the above stated bank’s interest is not eligible since not derived from co-operative society. I find that case law [2017] 396 ITR 371 [AP] The Vavveru Co-operative Rural Bank Ltd. vs. CCIT has already settled the issue that interest income from nationalized banks also qualifies for the impugned sec.80P deduction.

3.

I accordingly adopt the impugned sec.80P deduction in principle and leave it open for the learned Assessing Officer to finalise his consequential computation as per law in very terms. Ordered accordingly.

4.

This assessee’s appeal is allowed in above terms.

Order pronounced in the open Court on 22.03.2024.

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